The Company

Resource Generation (Resgen) has coal interests
in South Africa and Tasmania. Its current
priority is to develop its planned Boikarabelo
mine in the Waterberg region of South Africa
where there are probable reserves of 744.8
million tonnes of coal on 35% of the company's tenements.

Coal is the major source of energy in South Africa. Production from existing mines is
limited and there is expected to be an imbalance between supply and demand over the next
ten years. The Waterberg coalfield contains approximately 40% of South Africa's
remaining coal resource and is considered to be the main source of coal in the future.

The Boikarabelo coal seam is between 20 and 30 meters below the surface, ideally suited
for low-cost, open-cut mining. The seam is between 120 and 130 meters thick, with zones
of varying quality thermal and soft coking coal.

The Challenge

DRA is in the process of
designing the coal processing
plant for Resgen's
Boikarabelo mine in the
Lephalale area in Limpopo
province. As part of the
design and verification
process, DRA has to
determine the plant
constraints and capabilities
and determine the stockpile sizes for the run-of-mine (ROM) and product stockpiles.

It is planned to operate the mine on a 24x7 schedule, excluding public holidays. The ROM
is transported by trucks to the plant tipping stations and from there progress through
various combinations of processing equipment (primary and secondary sizers, rotary
breakers, storage bins, high- and low-grade plant modules, stockpiles and conveyors),
eventually conveyed out by rail transport.

Furthermore, the processing plant is to be developed in two phases, with the first phase
processing between 10 and 16 million tonnes per annum, leading up to between 34 and 42
million tonnes per annum in phase two.

Ceenex was requested to assist with advanced quantitative analysis of the processing plant
and ancillary equipment in terms of the following:

1. Trucks tipping into primary crushers, in the front.

2. Discard bin, loading into trucks, filter cake stockpile with extraction according to
specified profile and trains loaded out of the silo, in the back.

A dynamic simulation model was
developed in Simio, driven by
production from the mine plan,
metallurgical properties of the
coal, schedules and system
constraints.
The model also
accounted for the cumulative
effect of breakdowns,
maintenance, schedules and
stochastic variability on the size
of the stockpiles and the expected throughput of the system over the life-of-mine (LOM).

The system was modeled as a push system, feeding whenever possible. Breakdowns were
modeled on conveyors, sizers and plant modules and maintenance was planned on cycle.

Battery limits for the study were from trucks dumping into the ROM tip to the train leaving
the loading bin.
The simulation model also had to be expandable in future phases to
include the detail bench mining according to the mine plan as well as the detail rail and
port operations.

The Results

Several scenarios were run in order to
determine the capability of the system
and the stockpile size range required.
The model highlighted some key
system dynamics which would not be
evident from static analysis,
including:

The effect of ROM coal mix
between different products on
the product stockpiles and
plant feed.

The 3D simulation model (Click for Video) allowed for the visualization of the plant design
and ore flow through the system. The actual plant block plan served as a background for
the model, with model objects placed according to actual design location. Apart from
model validation through visualization, this proved valuable in conveying the model
configuration to key stakeholders, therein substantiating model credibility.

Next steps in the project would be to further refine the key model input data (mine plan)
and confirm processing plant capacities through further scenario analysis. Furthermore,
the model needs to be expanded to take into account detail rail and port operations.

Advanced quantitative analysis and the application of the latest modeling tools and
practices as noted in this case study, provided a means for Resgen to efficiently minimize
risk and effectively maximize return on investment.

About Resource Generation, Ltd.

Resource Generation is a public company dual listed on the
Australian and Johannesburg Stock Exchanges, and is a new
"energy resources company" specializing in the development of
major energy related resources. It has coal interests in South
Africa and Tasmania and its current priority is to develop its planned Boikarabelo mine in
the Waterberg region of South Africa. To learn more, visit www.resgen.com.au

Ceenex is an independent management, technology and
engineering advisory firm, solving complexity through the
application of their skills in business engineering,
development consulting, project and program management,
and information engineering. Ceenex is privately owned with
offices in Pretoria (South Africa) and McLean (Virginia, USA).
The Ceenex statement of qualifications covers more than 200 assignments with a strong
sectoral focus in mining, government, water and waste. To learn more, visit
www.ceenex.com.

About Simio

Simio LLC is a private company headquartered in Pittsburgh, Pennsylvania and is dedicated to delivering leading edge solutions for the design, emulation, and scheduling of complex systems.
To learn more, visit www.simio.com.